The sales volume in the city gas distribution (CGD) sector is poised to grow substantially in the coming years from the current level of 25 mmscmd. Following the implementation of the ninth CGD bidding round, the total number of compressed natural gas (CNG) stations is expected to reach 4,600. The tenth round will further add 3,500 CNG stations and the demand for CNG is expected to grow at a rate of 19 per cent. Moreover, 42 million households will have piped natural gas (PNG) connections and the demand for PNG is estimated to grow at a rate of 16 per cent. In order to facilitate the growing demand of natural gas in newly awarded geographical areas (GAs), liquid to compressed natural gas (LCNG) stations are being set up. Many GAs are situated in remote locations and do not have access to the existing pipeline infrastructure. Due to this, LCNG stations have to be developed as they remove the requirement of physical pipelines. Going forward, many players in the CGD sector are expected to invest extensively in LCNG stations.

In this video, Chiradeep Datta, Chief Operating Officer, Karnataka and Kerala GAs & Head, Operations and Maintenance, AG&P; Pankaj Wadhwa, Senior Vice President, Commercial & Marketing – LNG, THINK Gas Distribution Private Limited; and Srinivasan Murali, Senior Vice President, Operations and Maintenance, Mahanagar Gas Limited spoke about the rapid growth of CGD sector in India, current SSLNG infrastructure, future plans and potential demand.